Sandra has worked as an office manager at ABC Ltd. for 25 years. She is 57 years old, and her salary is $120,000 per year. Today she found out the company is terminating her employment. Sandra was very surprised by this, as she had never been told by her employers that she had done anything wrong. Her annual performance reviews with her boss had always been at least "satisfactory", and sometimes "good".

Since Sandra had been working at ABC for so long, the company offered her eight weeks pay (two months) in lieu of notice. Sandra felt that she should get more than two months. When she told her boss this, the boss withdrew the offer of two months' pay, and said Sandra's employment was being terminated for cause because she was incompetent. The boss pulled out a file that documented 13 customer complaints about Sandra dating back to 1999. The boss said "because you were not a good employee, we don't have to pay you anything. You're fired"!

Sandra has sued ABC for wrongful dismissal, and is claiming $160,000 in damages. ABC Ltd. has replied that Sandra was terminated for cause, so no money is payable for wrongful dismissal. Alternatively ABC Ltd. claims they only have to pay two months' salary maximum, which would amount to $20,000.

What will the result be if this case goes to court? In answering your question, make sure to discuss

(a) Sandra's claim that she should be paid $160,000 in damages;

(b) ABC's claim that they do not have to pay Sandra anything because she was terminated for cause; and

(c) ABC's other claim that if they owe Sandra anything, it is only $20,000.